PBO Costings Show Electrification is Key

Australia could easily achieve a 10 percent lift in household battery adoption in the immediate term.

New modelling from the Parliamentary Budget Office shows a tax deduction for household batteries would materially complement rooftop solar. This would be a real shot in the arm to our efforts to reduce household emissions.

Using carrots rather than sticks to incentivise the adoption of the best, cleanest and most disinflationary equipment is the ideal approach. The modelling sets out a range of scenarios where households can access tax deductions if they install a household battery.

It is just one idea that the new Senate Inquiry into household electrification will consider. The modelling has been released in an address to the Coalition for Conservation conference in Sydney.

Electrification is a key element on the path to net zero.

The benefits of electrification are so clearly tangible to households that no culture war could undermine progress on this front. For example, there may be no better way to fight inflation at the household level than through electrification.

These arguments won’t win themselves. They must be won through the development of policy and the profiling of the issues and the solutions. That will be the work of this Senate Inquiry: it will develop a smorgasbord of policy options on electrification for households and business.

Submissions to the Inquiry remain open .